Query: Saturday Closing Issue with Company Due to less production

Dear All,

I am working in a manufacturing company that is 2.5 years old, and the company's manpower is 30 people with around 70-80 contract roles. These days, the company is off every Saturday due to low production, and we are adjusting employees' leave (SL & CL) against these days off.

When I discussed this issue with our management, they mentioned that the company doesn't have enough work, so they are adjusting the leaves. Additionally, they mentioned that when employees work overtime, they are paid double, so they see no issue with this arrangement.

My question is, how can I convince the management not to deduct leaves for these days off? I have already proposed working an extra hour daily, but the management is not in agreement with that either.

Your guidance on this matter would be greatly appreciated.

Thank you.

Your question is more about convincing the management rather than complying with statutory requirements. I would suggest that you first comply with statutory obligations. Please review the working hours outlined in the Factories Act and ensure compliance with the regulations. Do not deduct employee leave for faults of the management.

Adjusting leave for days which the management has kept the factory closed is definitely illegal. It’s against both factory act and payment of wages act. And may even be against minimum wages act. So, you need to show him the relevant regulations and the case laws (fo a google search) where courts have already decided that this is illegal.
If the management decides to ignore it, ensure you have proof that you brought it to their notice because when the shit hits the fan, the management will look for scapegoats

Hi,

Your management is not doing the right thing here. HR has to inform, convince, and ensure compliance. Management cannot escape accountability for such deviations either.

Are you taking a leave application for such adjustment? If not, then request a leave application from the employee.

The practice you are following goes against the flow of laws and rules. If your industry is truly facing hardship, why not seek shelter under the law for layoff, retrenchment, and closure, as the case may be.

Why adopt unfair practices when there is an option for fair practices?

Paying twice the rate of normal wages to workers for overtime work is a legal obligation cast upon the employer, and certainly, it cannot be adjusted against their loss of earnings consequent on the employer's failure or inability to provide work on all six days of the week, which, apart from being illegal, is also a breach of the contract of employment. Similarly, the effect of compulsory adjustment of leaves at the credit of the employees is significant.

Apart from the lack of knowledge about legal provisions, some employers, like the one mentioned in the thread, are influenced either by their native intelligence or by a dormant Victorian mindset, indulging in finding compromising reasons as mentioned therein. At the very least, the questioner should have made efforts to check the provisions of the Industrial Disputes Act, 1947, relating to lay-off. Since the establishment has only 30 regular workmen on its roll, reference should be made to sec. 25-C of the Act, and it may be suggested to the management to grant lay-off with compensation for one day a week until the situation improves.